What does PIP insurance cover?

PIP (Personal Injury Protection) covers medical expenses, lost wages (typically 60–80% of gross income), rehabilitation costs, and in some states, funeral expenses and household services. It applies to you, passengers in your vehicle, and in most states, pedestrians struck by your vehicle — regardless of who caused the accident.

Which states require PIP insurance?

As of 2026, PIP is mandatory in: Florida, Michigan, New York, New Jersey, Pennsylvania, Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota, and Utah. Delaware, Maryland, Oregon, and Texas require PIP or a similar medical payments (MedPay) coverage. Check your state's specific requirements with your state insurance commissioner.

Should I use PIP or health insurance after a car accident?

Use PIP first in states where it is available — it typically pays faster, has no deductible to meet, and covers expenses health insurance does not (like lost wages and transportation). Health insurance becomes primary once PIP is exhausted. Using PIP does not affect your health insurance premiums.

Does PIP cover passengers in my car?

Yes. PIP covers all occupants of your vehicle at the time of the accident, including passengers — regardless of fault. In most states, your PIP also covers you if you are injured as a pedestrian or while riding in someone else's vehicle.

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PIP Insurance Explained: Personal Injury Protection After a Car Accident

Personal Injury Protection (PIP) is a car insurance coverage that pays your medical bills, lost wages, and related expenses after an accident — regardless of who was at fault. It is mandatory in 12 no-fault states and optional but highly recommended everywhere else. PIP pays faster than health insurance and covers costs health insurance does not, including lost income and rehabilitation.

First Responder Insight: In no-fault states, PIP is your first line of financial defense after a crash. I have seen people delay treatment because they were worried about who would pay — that delay hurts both your health and your legal claim. PIP is designed specifically so you can get care immediately without waiting for fault to be determined.

What Is PIP Insurance?

PIP — also called "no-fault insurance" — is a first-party coverage meaning it pays you directly, through your own policy, without requiring you to prove the other driver was at fault. It exists to ensure accident victims get medical care quickly without waiting for the fault determination process to play out.

PIP is the cornerstone of no-fault insurance systems, where each driver's own insurer pays their medical expenses regardless of who caused the crash.

What PIP Covers

Typically Covered by PIP

Emergency room and hospital bills
Doctor and specialist visits
Surgery and anesthesia
Physical therapy and rehabilitation
Prescription medications
Ambulance fees
Lost wages (60–80% of gross income, up to policy limits)
Household services if injury prevents normal activities
Funeral expenses (in most states)
Child care costs related to your injuries

NOT Covered by PIP

Vehicle damage (use collision coverage)
Injuries to the other driver or their passengers
Property damage
Pain and suffering (non-economic damages)
Medical care for intentional self-harm
Injuries while committing a crime
Injuries above your policy's coverage limit

States That Require PIP (2026)

State	Min. PIP Requirement	Tort Threshold
Florida	$10,000	Permanent injury to sue
Michigan	Unlimited medical (choice of limits since 2020)	Serious impairment to sue
New York	$50,000	Serious injury to sue
New Jersey	$15,000	Verbal or monetary threshold (choice)
Pennsylvania	$5,000	Choice of full or limited tort
Hawaii	$10,000	Monetary threshold to sue
Kansas	$4,500 medical / $900/mo lost wages	Monetary threshold to sue
Kentucky	$10,000	Choice of no-fault or tort
Massachusetts	$8,000	Monetary threshold to sue
Minnesota	$40,000	Monetary threshold to sue
North Dakota	$30,000	Monetary threshold to sue
Utah	$3,000	Monetary threshold to sue

Delaware, Maryland, Oregon, and Texas require MedPay or similar first-party medical coverage. All other states offer PIP as optional coverage.

PIP vs. MedPay: What's the Difference?

Feature	PIP	MedPay
Covers medical bills	Yes	Yes
Covers lost wages	Yes	No
Covers household services	Yes	No
Covers funeral expenses	Yes (most states)	No
Subrogation (insurer recovers from at-fault)	Yes	Yes
Availability	Required in no-fault states; optional elsewhere	Optional in most states

PIP vs. Health Insurance: Which to Use First?

In states with PIP, use PIP first. Here's why:

No deductible: PIP typically pays from dollar one; health insurance requires you to meet your deductible first
Faster payment: PIP is designed for quick disbursement — health insurance can take weeks to process claims
Covers more: PIP covers lost wages and household services — health insurance covers neither
No premium impact: Using PIP generally does not increase your health insurance premiums
No network restrictions: PIP typically allows you to see any licensed provider

Once PIP limits are exhausted, health insurance becomes the primary payer. If you win a settlement from the at-fault driver, both your PIP insurer and health insurer may assert a subrogation lien — a right to be repaid from your settlement proceeds.

PIP Claim Tips

File your PIP claim within 14 days — many states have strict notice deadlines
Keep all medical bills and provider receipts — PIP reimburses documented expenses
Document lost wages with pay stubs and an employer letter
If your PIP insurer requires an Independent Medical Examination (IME), attend — refusal can suspend benefits
If PIP benefits are denied or reduced, you have the right to appeal; contact your state's insurance commissioner

Key Takeaway

PIP is one of the most valuable and most underutilized coverages in car insurance. If you are in a no-fault state, use it immediately after any accident. If you are in an at-fault state, consider adding it — the cost is low and it ensures you can get medical care and replace lost income without waiting months for a liability settlement.